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8Hi everyone,
I need to understand how to add all costs related to a product. In this case we are talking about profiles (aluminum square bars).
1) Cost related to the raw material you buy in bulk. For simplicity let's say I bought 10kg at the price of €1/kg so total €10.
2) The pallet of profiles are shipped to a company that processes them and does the specific cutting and machining. Let's say that with this quantity we can make 20 pcs and each profile weighs 500g (20x500=10000g = 10kg) . Let's say that to make this profile machining cost is €5
3) Finally the cut and processed profiles go to another company that does the treatment. This treatment costs us €1/kg.
So the product that has been processed whose relative weight is 500g, comes to cost us €0.5 each.
So the product that has been processed whose relative weight is 500g, comes to cost us €0.5 each.
So the unit cost should be the sum of these operations then:
1) Since each profile weighs 500g and we have produced 20 pcs the unit cost of each profile will be €0.5.
2) The cost of processing is €5
3) The cost of processing is €0.5.
2) The cost of processing is €5
3) The cost of processing is €0.5.
So total cost is €6
How do I enter all these costs in the cost section in the item database?
I hope I have been clear.
Thank you in advance!
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